An investor decides to form a portfolio by putting 40% of wealth in stock A and the rest in B. Below it shows the possible states of economy and the expected rate of return for each stock under each state. Given the information, what is the expected return of the portfolio? State of Economy Probability of State Stock A Rate of Return Stock B Rate of Return Boom 20% 11% 22% Normal 50% 7% 11% Recession 30% -6% -18% 6.79% 5.83% 4.26% 3.90%